Cockroach vs unicorn: Investors looking for startups that can survive anything – The Economic Times

economictimes.indiatimes.com – The sight of them usually makes one shudder, but in the startup world, cockroaches are being seen as hardy, resilient creatures that live through any disaster, unlike the more flighty, mythical unicorn Last year, investors threw money at unicorns – companies valued at $1 billion or more – but this year, it seems to be the turn of the cockroach, startups that scale slowly with sound fundamentals and strong business models.

In other words, startups that can survive anything.India’s largest unicorns, Flipkart and Snapdeal, have struggled in recent times to raise funding at their high valuations. “It is not about lack of money but whether these companies are ready for lower valuation. Otherwise, you should grow your revenues to match your valuation,” says Mohan Kumar, director, Norwest Venture Partners.Most investors say sectors like education and healthcare will provide sustainable models and create lasting companies even if these industries do not spawn unicorns.